Subject:
AccountancyAuthor:
ciarawattsCreated:
1 year agoAnswer:
Given :-(1) Minimum Consumption = 100 units per day
(2) Maximum Consumption = 150 units per day
(3) Normal Consumption = 120 units per day
(4) Re-order Period = 10 to 15 days
(5) Re-order Quantity = 1500 units
(6) Normal Re-order Period = 12 days
To Find :-(i) Minimum Stock Level
(ii) Maximum Stock Level
(iii) Re-order Level
Solution :-☆ (iii) Re-order Level :
As we know that :
[tex]\footnotesize \bigstar \: \: \sf\boxed{\bold{Re-order\: Level =\: Maximum\: Consumption\: per\: day \times Maximum\: Re-order\: Period}}\: \: \: \bigstar\\[/tex]
Given :
According to the question by using the formula we get,
[tex]\implies \sf Re-order\: Level =\: 150 \times 15\\[/tex]
[tex]\implies \sf\bold{\underline{Re-order\: Level =\: 2250\: units}}\\[/tex]
[tex]\therefore[/tex] The re-order level is 2250 units .
[tex]\\[/tex]
☆ (i) Minimum Stock Level :
As we know that :
[tex]\footnotesize \bigstar \: \: \sf\boxed{\bold{Minimum\: Stock\: Level =\: Re-order\: Level - (Normal\: Consumption \times Normal\: Re-order\: Period)}}\: \: \: \bigstar\\[/tex]
Given :
According to the question by using the formula we get,
[tex]\dashrightarrow \sf Minimum\: Stock\: Level =\: 2250 - (120 \times 12)\\[/tex]
[tex]\dashrightarrow \sf Minimum\: Stock\: Level =\: 2250 - 1440\\[/tex]
[tex]\dashrightarrow \sf\bold{\underline{Minimum\: Stock\: Level =\: 810\: units}}\\[/tex]
[tex]\therefore[/tex] The minimum stock level is 810 units .
[tex]\\[/tex]
☆ (ii) Maximum Stock Level :
As we know that :
[tex]\footnotesize \bigstar \: \: \sf\boxed{\bold{Maximum\: Stock\: Level =\: Re-order\: Level + Re-order\: Quantity - (Minimum\: Consumption \times Minimum\: Re-order\: Period)}}\: \: \: \bigstar\\[/tex]
Given :
According to the question by using the formula we get,
[tex]\leadsto \sf Maximum\: Stock\: Level =\: 2250 + 1500 - (100 \times 10)\\[/tex]
[tex]\leadsto \sf Maximum\: Stock\: Level =\: 3750 - 1000\\[/tex]
[tex]\leadsto \sf\bold{\underline{Maximum\: Stock\: Level =\: 2750\: units}}\\[/tex]
[tex]\therefore[/tex] The maximum stock level is 2750 units .
Author:
chumbhun
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